Klarna (KLAR) shares have fallen below their $40 initial public offering price. The fintech company debuted on the New York Stock Exchange on September 10, 2025. While shares opened at $52, the stock has since experienced a significant decline.
Investors are questioning the sustainability of the Buy Now, Pay Later (BNPL) model. A March 2026 survey found that 47% of BNPL users made at least one late payment in the past year. This increase in delinquencies has heightened market concerns regarding credit losses across the sector.
Klarna reported a net loss for the 2025 fiscal year. The company also increased its loan loss provisions to account for rising default risks.